The Duty to Inform Before the Loan
A student loan, as a financial service, is governed by the general rules of the Law on Consumer Rights Protection. Article 5 obliges the trader, before the conclusion of the contract, to provide the consumer in the state language, clearly and understandably, with reliable and complete information: the name and essential characteristics of the service, the identity and address of the trader, the price and additional costs, the terms of payment and delivery, guarantees, the duration of the contract and the conditions of withdrawal. For a loan, this means the transparent presentation in advance of interest, commissions and other charges.
Two rules are especially important: first, this information is an integral part of the contract and may be changed only with the express consent of the parties; second, the burden of proving compliance with the information requirements lies on the trader. Where the trader violated the duty to provide information on additional costs, the consumer is not charged the respective additional cost. Recording and keeping all loan terms in writing is the practical application of precisely these rules.